Largest Acquisition in Gaming Industry History

Electronic Arts (EA), the global gaming publisher renowned for The Sims and FIFA series, is being acquired by a Saudi Arabia sovereign wealth fund-led consortium for $55 billion (approximately 77 trillion won). This marks the largest cash buyout transaction in history.

The acquisition consortium includes Saudi Arabia's Public Investment Fund (PIF), along with U.S. private equity firm Silver Lake and Miami-based investment firm Affinity Partners, founded by Jared Kushner. Kushner is the son-in-law of former President Donald Trump and served as a White House advisor.

Deal Structure and Financing

The transaction comprises $36 billion in equity investment from consortium members and $20 billion in debt financing provided by JPMorgan Chase. Upon completion, EA will be delisted from Nasdaq, while its headquarters will remain in Redwood City, California.

EA Chairman and CEO Andrew Wilson stated, "This transaction is a powerful recognition of our employees' incredible achievements and will open new opportunities on the global stage."

EA's Current Position

EA owns popular franchises including FIFA soccer games, Madden NFL, The Sims, and Battlefield, with recent fiscal year revenues reaching $7.5 billion.

The FIFA franchise, which received annual updates from 1993 to 2023, lost its license due to financial disagreements between EA and the FIFA organization. Now renamed EA Sports FC, the game has maintained its player base, becoming the best-selling game in Western Europe since its 2023 debut.

Founded in 1982 by former Apple employee Trip Hawkins, EA experienced a revenue surge following the COVID-19 pandemic but has recently faced slowdowns alongside the broader gaming industry.

Saudi Arabia's Gaming Investment Strategy

Saudi PIF already holds a 9.9% stake in EA and will roll over its existing investment in this transaction.

This acquisition follows President Trump's May visit to the Gulf region, during which he signed a "strategic economic partnership" agreement with Saudi Crown Prince Mohammed bin Salman, securing a commitment for $600 billion in U.S. investments.

Gaming is central to the Crown Prince's ambitious "Vision 2030" reform plan. Seventy percent of Saudi Arabia's population is under 35, and the 40-year-old Crown Prince himself is known to be a Call of Duty fan.

Market Reaction

Shares of publicly traded gaming companies rose on Monday on Wall Street. Roblox gained 4.72%, while Take-Two Interactive increased 1.53%.

The acquisition is expected to close in early fiscal year 2027, pending approval from EA shareholders and regulatory authorities. This represents a major gaming industry deal following Microsoft's $75 billion acquisition of Activision Blizzard two years ago.